Arm (ARM) Q2 2026 Earnings
Reported Nov 5, 2025 at 4:02 PM ET · SEC Source
Q2 26 EPS
$0.22
MISS 33.69%
Est. $0.33
Q2 26 Revenue
$1.14B
BEAT +6.97%
Est. $1.06B
vs S&P Since Q2 26
+79.0%
BEATING MARKET
ARM +90.1% vs S&P +11.1%
Market Reaction
Did ARM Beat Earnings? Q2 2026 Results
Arm Holdings delivered a split verdict in its fiscal second quarter ended September 30, 2025, posting revenue that cleared Wall Street's bar while earnings fell notably short. The chip architecture company reported revenue of $1.14 billion, up 34.5% … Read more Arm Holdings delivered a split verdict in its fiscal second quarter ended September 30, 2025, posting revenue that cleared Wall Street's bar while earnings fell notably short. The chip architecture company reported revenue of $1.14 billion, up 34.5% year over year and ahead of the $1.06 billion consensus estimate by roughly 6.97%, marking the third consecutive quarter above $1 billion. Earnings per share of $0.22, however, missed the $0.33 consensus by 33.69%, with the gap partly explained by a $64 million income tax expense that reversed a $43 million benefit recorded in the year-ago period. The headline revenue strength was driven by a 56% surge in license and other revenue to $515 million, alongside continued Armv9 royalty adoption across smartphones, cloud, and data center workloads. Arm also announced a roughly $265 million cash agreement to acquire DreamBig Semiconductor, expected to close by March 2026, signaling continued appetite for acquisitions as the company invests in next-generation product development and expands into new markets.
Key Takeaways
- • Strong growth in license and royalty revenue from both external customers and related parties
- • Revenue from SoftBank Group affiliate licensing and servicing arrangements increased significantly
- • Higher Arm China IPLA revenue
- • Gain on divestiture of Artisan foundation IP business to Cadence Design Systems ($131 million pre-tax)
- • Rising AI demand driving compute needs across all end markets
- • Improved mix of products with higher royalty rates per chip, particularly Armv9 technology
- • Contributions from backlog into the current period from arrangements entered in prior periods
ARM YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
ARM Revenue by Segment
With YoY comparisons, source: SEC Filings
ARM Revenue by Geography
With YoY comparisons, source: SEC Filings
ARM Earnings Trends
ARM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ARM EPS Trend
Earnings per share: estimate vs actual
ARM Revenue Trend
Quarterly revenue: estimate vs actual
ARM Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $0.58 | $0.60 | +3.57% | $1.49B | +1.37% |
| FY Full Year | — | $1.77 | — | $4.92B | — |
| Q3 26 MISS | $0.41 | $0.21 | -48.68% | $1.24B | +1.24% |
| Q2 26 MISS | $0.33 | $0.22 | -33.69% | $1.14B | +6.97% |
| Q1 26 MISS | $0.35 | $0.35 | -0.31% | $1.05B | -0.77% |